12:27 PM EST, 01/23/2025 (MT Newswires) -- (Updates with stock price movement in the headline and first paragraph)

AST SpaceMobile ( ASTS ) shares sank by more than 14% in recent Thursday trading after the company priced a $400 million debt offering.

The company priced $400 million of 4.25% convertible senior unsecured notes due 2032 in a private offering.

Initial purchasers were granted a 13-day option to buy up to an additional $60 million of notes, the company said. The sale to initial purchases is expected to settle on Jan. 27.

The initial conversion rate will be 37.0535 shares of AST SpaceMobile's ( ASTS ) class A common stock per $1,000 of notes, equivalent to an initial conversion price of about $26.99 per share.

The company estimates net proceeds of about $387.9 million, of which it plans to use about $38.7 million to pay the cost of certain capped call transactions and the remaining for working capital or other general corporate purposes.

Price: 19.09, Change: -3.41, Percent Change: -15.14